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Due Diligence Roadmap, Employment Law Basics, YC’s Michael Seibel • Technology Flow

Last week, we featured an article by Gaetano Cruppi, a partner at VC firm Prime Movers Lab, identifying the three pillars needed to support a Series B data room: a strategy memo, a pitch deck, and a forecast model.

In a follow-up, he described the next step: packaging this information for prospective investors to “create the blueprint and backbone for an in-depth Series B due diligence process.”

If you’re preparing for Series B, these articles explain what investors are looking for and how each piece works individually and collectively.

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Croupy also discusses some of the less obvious aspects of Series B fundraising, such as the need for topic-specific breakout decks, a comprehensive due diligence questionnaire and, critically, how to put it all together.

If your startup still hasn’t achieved product-market fit, feel free to skip this article and get to work. As Croupy states:

The advice provided here will only help companies with really good fundamentals. You have to have things — window dressing that brings luck with all other things in your favor.

Thank you so much for reading,

Walter Thompson
Editorial Manager, Technology Flow+
@your protagonist

‘Just break even’ might be the worst advice for startups in turbulent times

a dollar sign made of cheese on a mousetrap;  Break even ill-advised startups

Image Credits: Andrey Onufrienko (Opens in a new window) / Getty Images

A friend shared a photo on Twitter of a feral cat running on the electrified third rail of a subway track in NYC.

This was dangerous, but as long as the animal avoided simultaneous contact with the ground and the rail, it was a safe route to its destination.

Refusing to cut costs during a downturn is like walking on the third rail: Companies that can maintain this tricky balance can continue to grow, driving them to the next level, according to Igor Ryabenkiy, CEO and managing partner of AltaIR Capital.

“Founders love the idea of ​​breaking even as quickly as possible,” he writes.

“Even if their company doesn’t become a unicorn, it can now earn them a steady salary and dividends. But for an investor, it’s scary.

4 Employment Law Mistakes Startups Can Stop Making Today

A piece of toast with a sad face;  Mistakes of employment law

Image Credits: Martin Diebel (Opens in a new window) / Getty Images

There’s no better way to say it: When it comes to onboarding new employees, most early-stage startups are inefficient or disinterested.

At that point in a company’s development, speed and growth are considered more important than basic paperwork. And because most first-time entrepreneurs lack management experience, problems eventually arise.

In her third article for TC+, attorney Kristen Carpion analyzes the risks associated with non-compliance and outlines four common mistakes that can create problems down the road.

“By addressing employment law issues early, a startup can set itself up to scale more smoothly,” she writes.

YC’s Michael Seibel clears up some misconceptions about Accelerator

YC Demo Day 2022 Image

Image Credits: Bryce Durbin / Technology Flow

In a conversation adapted from the Equity Podcast, Michael Seibel, YC partner and managing director of YC Early Stage, talks about starting up during the recession, why his accelerator offers bigger checks, diversity and other issues related to seed-stage startups.

In the middle of last year, we asked, “What’s the revenue multiple here?” We started asking the question. And we’re starting to see companies multiply their revenue by 100x to 350x.

So if I have $3 million in revenue, I have a billion dollar company. None of us have been around for more than two seconds [knows] That doesn’t seem sustainable.

So our partners, Dalton Caldwell, Jared [Friedman] And I sat down that fall and we said, “Let’s just say it’s not going to last,” because it sure seems like it is. “What can we do to help YC companies through the downturn?”

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